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The U.S. Court of Appeals for the Fifth Circuit, reversing a district court’s decision, has ruled that four umbrella insurance carriers were liable for removal of debris (“ROD”) expenses an energy exploration and development company said it had incurred as a result of Hurricane Ike. The circuit court rejected the umbrella carriers’ contention that their policies only took effect if the insured’s underlying/primary insurance was exhausted by claims that would be covered by the umbrella policies.

The Case

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